Zambia cement demand set for strong growth

Zambia cement demand set for strong growth
Published: 28 March 2013

Tagged Under: Zambia Consumption Volumes 

Zambian cement demand is forecast to double over the next 10 years, according to the country’s largest cement producer Lafarge Zambia Cement.

Domestic consumption in 2012 is expected to have reached 12Mt, having increased 11 per cent YoY. The average pace of growth will be 10 per cent a year until 2018, according to a report by Bloomberg citing Lafarge Zambia’s Cement’s acting CEO Chrissie Moloseni.

Zambia is presently readying itself to co-host the United Nations World Tourism Organisation (UNWTO) General Assembly later this year. The city of Livingstone is currently undertaking a number of projects such as construction of the town centre market, international bus terminus, new stadium, ablution blocks and upgrading of roads among others. The UNWTO is scheduled for 24-29 August 2013 and will be held in Livingstone, Zambia and Victoria Falls Town, Zimbabwe.

Moreover, the government recently announced the Zambia 8000 Road Project, a US$5.4bn three-phase scheme aimed at constructing and rehabilitating 8211km of roads and bridges by 2017. In December 2012, the African Development Bank and Zambian government signed a loan agreement for US$55m to support the construction and operation of the new 120MW Itezhi-Tezhi hydropower and transmission line project on the Kafue River.

With more than 80 per cent of the market and a total capacity of 1.3Mta, Lafarge Cement Zambia is currently the dominant producer. The company operates two plants, a cement mill and packing unit in Chilanga (0.85Mta) and one in Ndola (0.45Mta). The Ndola works had been offline from June 2010 due to low demand, but operations resumed in 2H2012 as demand picked up, and now produces at full capacity. Total production in 2011 was 0.99Mta, representing an overall 80 per cent capacity utilisation. Seventy per cent of its output is destined for the local market with the remaining 30 per cent exported.

A number of projects are being undertaken by producers the Zambian cement market, which will lift capacity from the existing 1.73Mta to 4.8Mta by the end of 2014.